Cash ISA | Instant And Easy Access ISA

Summary box

Account Name

Cash ISA

What is the interest rate?

Current Rate

Balance	Interest rate
All balances	2.75% AER (2.72% tax-free)

Interest is variable, calculated daily and credited monthly.

Can first direct change the interest rate?

Yes. The account pays a variable rate of interest, which means it can change over time. The first direct cash ISA Terms and Conditions explain when and how we do this. For example, we might review the interest rate if the Bank of England base rate changes.

What would the estimated balance be after 12 months based on a £1,000 deposit?

Initial deposit	Interest rate	Balance at end of 12 months
£1,000	2.75% AER (2.72% tax-free)	£1,027.50

For the purpose of this calculation it is assumed:

initial deposit of £1,000
no additional deposits
no withdrawals
the interest rate remains the same during the 12 months

Projection provided for illustrative purposes only and does not take into account individual circumstances.

How do I open & manage my account?

Eligibility:

you must hold a first direct 1st Account, our current account
be aged 18 years or over
you must provide your National Insurance Number if you’re eligible to hold one
in addition, in order to subscribe you need to be resident in the UK for tax purposes, or if not so resident, be a UK Crown employee serving overseas, or be married to, or in a civil partnership with, such a person

How to open the account:

this account can only be opened in a sole name
open an account via our App, Online Banking, or by post
or you can transfer current and/or previous tax years' subscriptions by completing an ISA transfer form

Minimum/Maximum Balance:

a minimum of £1 must be deposited to open the account
the overall ISA subscription limit is £20,000 for the current tax year, within this the Lifetime ISA has it's own annual payment limit (currently £4,000). You can only subscribe to one type of cash ISA and one type of stocks and shares ISA in the same tax year across HSBC and first direct
no maximum balance

How to manage the account:

once opened you can manage your account via Online Banking, through our App or by phone

Can I withdraw money?

Yes, you have instant access to your account. You can make as many fee free withdrawals as you like. However, any amount you have paid into your ISA will count towards your annual ISA subscription limit even if you later withdraw it.

If you withdraw funds from your ISA you will lose the associated future tax benefits.

Additional Information

a 30-day cancellation period applies to this account
you can check your eligibility and apply at GOV.UK > Money and Tax > National Insurance
interest is paid tax-free, that means it is paid free from UK Income Tax and Capital Gains Tax
the value of tax benefits provided by a cash ISA depend on your personal circumstances and tax rules may change in the future

Definitions

AER stands for Annual Equivalent Rate. This shows you what the gross rate would be if interest were paid and compounded each year
ISA stands for Individual Savings Account

Information correct as of 10 November 2025

Before you apply

Transferring ISAs

ISAs can be transferred to another ISA, either with the same provider or someone new (but remember not all cash ISAs accept transfers in and some providers may charge for transferring an ISA out). Here's what you need to know:

when an ISA is transferred, any amount transferred from previous years' allowances aren't counted in that year's allowance
previous years' allowances do not need to be transferred in full, they can be split between different providers
you can transfer cash or stocks and shares ISA balances to us, held with other providers, from previous or current tax years
however any amount being transferred from the current tax year must be transferred as a whole and will count towards that year's allowance
when transferring a stocks and shares ISA, your stocks and shares ISA manager will, after receiving the instruction to transfer, sell your shares and make the transfer in cash - and this could mean a loss of income or interest whilst the transfer is being made.

Cash ISA Transfer Request Form (PDF)

Reactivating your ISA

Each time you make a subscription into your ISA, it counts towards your annual allowance.

You’re eligible to subscribe into your Cash ISA if:

you’re a resident in the UK for tax purposes. Or if you’re a UK Crown servant serving overseas, or you’re married to/in a civil partnership with such a person
you haven’t already subscribed into another cash ISA with first direct or HSBC this tax year
you haven’t subscribed your full ISA subscription limit for this tax year yet.

If you’re eligible, you can easily subscribe to your first direct Cash ISA via Online Banking or our App. You can just go ahead and make a payment into your ISA, as long as you meet the subscription eligibility criteria above, and:

you have previously completed an application to subscribe to your account (rather than ‘only’ completing an application to undertake an ISA transfer)
we hold your full name, permanent residential address and date of birth
we hold a valid National Insurance Number for you
you don’t have any dormant accounts with us.

If you don’t meet all of the criteria above, you’ll need to download and complete the Cash ISA reactivation form (PDF).

Important documents

Cash ISA Terms and Conditions (PDF)
Privacy Notice (PDF)
Interest Rate and Charges (PDF) (For 1st Account charges refer to Account Terms and Conditions and Charges)
UK Financial Services Compensation Scheme Information Sheet and Exclusions List (PDF)
Cash ISA Application and Reactivation Form (PDF)
Cash ISA Transfer Request Form (PDF)
Cash ISA Standing Order Form (PDF)
Cash ISA Transfer Guidelines (PDF)

Cash ISA cashback offer terms and conditions

What is the first direct Cash ISA Cashback offer?

This offer is only available during the Offer Period.
You’ll be eligible to receive £100 (the “Reward”) if you, during the Offer Period, either:
1. Transfer-in an ISA to a first direct Cash ISA from a non-HSBC group ISA and have contributed at least the Qualifying Amount; or
2. Already hold a first direct Cash ISA and deposit at least the Qualifying Amount.
“Qualifying Amount” is the sum of £10,000 or more in New Funds, either paid in from a non-HSBC group account, or transferred in via an ISA transfer, or a mixture of both.
“New Funds” are funds that aren’t already held in any account with first direct, HSBC or M&S Bank, before 6 April 2026
To receive the Reward, you must remain a first direct customer with an open first direct 1st Account in good standing, that is not restricted or suspended, throughout the Offer Period and up to the time the Reward is paid, and the ISA funds must remain in your first direct Cash ISA throughout that time.
If you’re eligible to receive the Reward, it will be credited to your first direct 1st Account on 31 July 2026.

Who’s running the Cash ISA Cashback offer?

first direct (a division of HSBC UK Bank plc) referred to in these terms and conditions as “first direct”, “we”, “us”, or “our”) is the promoter and fulfiller of this offer.

What are New Funds?

Funds that aren’t already held in any account with first direct, HSBC or M&S Bank, before 6 April 2026.

What is the Offer Period?

This offer runs from 00:01 am on 6 April 2026 to 11:59 pm on 4 May 2026.
ISA transfers and/or transactions outside of the Offer Period will not qualify.

Which first direct ISA is eligible?

Only the first direct Cash ISA is eligible for this offer.
For the avoidance of doubt, the first direct Fixed Rate ISA is exclused from this offer.

Important: the first direct Cash ISA account has its own terms and conditions that may affect how and when you can access your money. Please check the product terms and conditions before you apply to make sure the product suits your needs.

What ISA transfers qualify for this Offer?

You can transfer-in one or more existing ISAs held with other providers (i.e. non-HSBC group providers).
If you are transferring one or more ISAs from another institution(s), you must use the ISA transfer process to qualify for the Reward.
Both partial and full deposits and/or transfers are eligible, however any amount being transferred from the current tax year must be transferred as a whole and will count towards that year's allowance.
If the ISA(s) you transfer in does not meet the Qualifying Amount then you may contribute New Funds to reach that sum.
Your valid ISA transfer-in request) and supporting evidence must be received by us within the Offer Period. If your transfer-in request is received by us but cannot be completed within the Offer Period, you will only be eligible to receive the Reward if the transferred balance meets the Qualifying Amount without adding New Funds.
For more information on transfers into the first direct Cash ISA click here.

What is the Reward?

If you qualify, we will credit the Reward, specifically the sum of £100, to your first direct 1st Account.

How and when will I receive the Reward?

If you qualify, the Reward will be paid in GBP into your first direct 1st Account on 31st July 2026.
Only one Reward will be paid per account, in accordance with these terms and conditions.

How do I qualify for this offer?

To qualify for this Offer, you must:

Be aged 18 or over.
Be a UK resident.
Hold or open an eligible first direct Cash ISA account.
Pay in New Funds of the Qualifying Account or more during the Offer Period, and keep a minimum balance of at least the Qualifying Amount until the Reward is paid.
Hold a first direct 1st Account which is not impaired, and which remains in good order.
Meet the qualifying criteria for the first direct Cash ISA.
This Offer is open to new and existing first direct, M&S Bank and HSBC customers and employees.

These terms and conditions lay out the full eligibility criteria for the Offer. By taking part in the Offer, you’re agreeing to these terms and conditions.

Your Personal Data:

first direct, its group companies, and its authorised third parties will only use your personal data provided in relation to the offer for the purposes of administering the offer reward. Your data will be treated in accordance with our Privacy Notice

What else do you need to know?

We’re not responsible for any loss or damage you incur by taking part in the Offer unless the loss or damage is directly caused by our negligence.
We can change these terms and conditions or cancel the Offer without telling you in advance if:
- Required by law or regulatory reasons; or
- There are reasons beyond our control; or
- There’s a fair or valid reason.
In the event of any changes or cancellation of the Offer, we’ll attempt to notify you. We will not be held responsible for any resulting loss, direct or indirect, due to the inability to continue the Offer as planned.
If you receive the Reward, then this may be reportable to HMRC, and you are responsible for any tax liabilities. We do not provide tax advice, please speak to a tax adviser if needed.
The Offer is intended for individuals participating in good faith, a genuine way and for lawful purposes. In the event of suspicious or fraudulent activity, such as trying to abuse the Offer, first direct (in its sole and absolute discretion) reserves the right to suspend your account and withhold any Reward.
We’re covered by the Financial Services Compensation Scheme (FSCS). This applies to eligible deposits and investments. Most deposit and investment activity is covered by the scheme (up to relevant scheme limits) and you may be entitled to claim compensation if we can’t meet our obligations.
These terms and conditions are governed by English law, and claims can be brought in courts in the United Kingdom.

Update from tax year 2024/2025 ISA changes

What changes to the ISA regulations applied to the first direct cash ISA from 6 April 2024?

The following changes to ISA regulations came into effect in April 2024, for the 2024/25 tax year:

Mandatory change:

Since 6 April 2024, to open a new Cash ISA, customers need to be aged 18 or over

Optional changes:

Note: Individual ISA providers aren’t obliged to make the following changes. However, all ISA providers are required to update application forms/declarations from 6 April 2024 to reflect any changes they do make.

customers can subscribe to multiple ISAs of the same type in each tax year but they must remain within the overall annual subscription limit across all ISAs held. The exception to this is subscriptions to a Lifetime ISA (which we don’t offer) and to customers under 18 subscribing to a cash ISA
customers can make partial transfers of current tax years’ subscriptions
customers can restart subscriptions to an ISA they haven’t made subscriptions to in the previous tax year without having to complete an application form. NOTE: This doesn’t apply to ISA products where an application form is required every tax year before subscribing.

What changes did first direct make?

We were already complying with the mandatory change announced by HMRC, increasing the minimum age for opening cash ISAs from 16 to 18 years old. We only offer cash ISAs to customers over 18 years old.

From 6 April 2024, customers aged 16 or 17 covered by the transitional arrangements can subscribe to a cash ISA but, up until they turn 18, they can’t subscribe to more than one cash ISA in the same tax year. This was an optional change, which we didn’t make.

In certain circumstances, your existing first direct Cash ISA can be restarted without a fresh application. first direct are not currently allowing this for Stocks and Shares ISAs.

Did first direct implement all the changes HMRC announced?

No, we didn’t implement all the optional changes.

What changes did other providers make?

As some of the changes are optional, individual providers may be approaching the changes differently.

Save tax-free with our Cash ISA

What's on offer?

At a glance

All things tax

Who can apply?